Video Rental Giant Files For Bankruptcy

Movie Gallery has filed for bankruptcy. It is just too hard to compete with low sale prices at places like Target, Wal-Mart, and Costco, and all of the home delivery systems for movies – and, course, other rental chains.

The Dothan, Ala.-based company, which also has tried to fight off online competition, announced plans last month to close about 520 unprofitable stores, and said on its website that it might shut down stores during the reorganization.